NWS acquires additional interest in Hangzhou Ring Road
NWS Holdings Limited ("NWS") announced that its wholly-owned subsidiary, Moscan Developments Limited, entered into a sale and purchase agreement with Kaiming Holdings Limited ("Kaiming") in respect of the acquisition of an aggregate of 75% of the total issued shares in Widefaith Group Limited ("Widefaith"), representing approximately 36.34% effective interest in Hangzhou Ring Road ("HZRR"). Upon completion, NWS' effective interest in HZRR, when aggregated with the acquisitions as announced on 14 June 2011, 27 July 2011 and 9 September 2011, will increase from approximately 58.66% to 95%.
The acquisition of 75% of the total issued shares in Widefaith is in relation to the exercise of the put option by Kaiming granted under the sale and purchase agreement dated 27 July 2011 in respect of the acquisition of 25% of the total issued shares of Widefaith and an additional 10% of the total issued shares in Widefaith at the aggregate consideration of US$401,625,000 (equivalent to approximately HK$3,132.68 million) plus daily increments calculated with reference to the respective actual payment dates or date of the sale and purchase agreement.
NWS believes that by completing the acquisition, the infrastructure portfolio of NWS will be further expanded which will enhance NWS' sustainable growth in the toll road sector in Mainland China. Being one of the longest (103.4km) and busiest expressways with dual two-to-three lanes in the Yangtze River Delta region, HZRR forms a complete loop around Hangzhou City and serves as a hub for inter-city and cross-provincial traffic. The ring road is therefore well positioned to capitalize on the rapid economic development within the region and generate immediate profit contribution and cashflow to NWS.
NWS' Roads portfolio currently comprises 21 roads, bridge and related projects in Hong Kong and Mainland China including Guangdong, Guangxi, Shanxi, Zhejiang and Tianjin. Altogether these road projects cover a total length of approximately 721km.